Tech Firm Sees Savings by Outsourcing Non-Production Functions |
| Summary |
| A major technology company was considering global back-office outsourcing and best shore assessment of most non-production-related functions. These included CRM functions, Finance, HR, Call Center, middle-office processing, billing, customer service and Tele-sales. Some 3,000 employees and contractors located across Europe, North America and Asia were considered in the assessment. |
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Client Challenge - Cost-effective resources needed to support an aggressive growth strategy by using a global cost basis
- More than half of in-scope staff located outside of the U.S., but in high-cost locations.
- Potential re-booking of earnings if Irish tax authorities changed the client’s tax status based on movement of operations
- True cost of current operations (to make an effective sourcing decision) not known
How Alsbridge Helped - Evaluated global operations to determine best scope, location and configuration to provide the highest quality services
- Determined true total cost and a high-level process map to best shore client operation and facilitate the decision by management of what functions to outsource and offshore.
- Provided a net business case that evaluated risk, benefit, exact timing of a straw-person migration plan; and a business case expressed in the form of net cash required, Net Present Value (NPV), Internal rate of Return (IRR), and months to net zero on cash
Benefit - Client is currently implementing the recommended plan with a mix of outsourced and captive offshore operations. Savings targets are significant and confidential due to the ongoing nature of this engagement.
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